Ocean Marine is a form of commercial property coverage for imports and exports that are being transported over waterways (oceans). These policies protect hulls and the cargo aboard the ship. Ocean marine insurance covers four basic risks:
Ocean marine insurance generally provides open-peril protection. The common perils insured against include perils of the sea such as damage caused by waves, sinking, stranding on reefs or rocks, collision, lightning damage, fire damage, theft by pirates, jettison and barratry.
Various implied warranties apply to ocean marine insurance and must be observed. The following are considered to be the most important implied warranties:
The typical exclusions include losses caused by war, strikes, riots, civil commotion, decay, deterioration, and inherent vice.
Inland Marine Insurance was first developed as an extension of Ocean Marine coverage to provide coverage for cargo traveling over land instead of by sea.
To help identify which risks would be covered under Inland and Ocean Marine, the insurance industry in our country developed nationwide definitions of coverage. The definition lists six categories of eligible risks under Marine insurance:
Transportation policies are also referred to as transit insurance. They cover owners of property against damage to their property while in transit by carrier.
A shipper’s form is available to cover property in transit that may be damaged in circumstances under which the carrier has no legal obligation to pay the shipper’s loss.
A trucker or carrier form insures a trucker against legal liability for damage to the property of others that the trucker is transporting for hire.
An owner form insures property owners against damage to their own property while being transported on their own trucks.
A combination trucker’s and owner’s form is also available which combines the protection provided by each of those forms.
Another form of transportation coverage involves a trip transit policy, which is available for single shipments of merchandise, clothing, furniture, or livestock while in transit by motor truck or other covered type of transportation.
Instrumentalities of Transportation & Communication coverage provides for damage to bridges, tunnels, dams, pipelines, piers, docks, radio and TV towers. While this property is not portable, it is directly connected to transportation and subject to many of the same perils.
A bailment is the delivery of property by the owner to someone else to be held by the bailee for some special purpose and then returned to the owner. If the property is damaged while in the bailee’s custody, the bailee will be held liable for damages.
Provides coverage for inscribed, written, or printed documents, manuscripts, or records, including abstracts, books, deeds, drawings, films, maps, or mortgages.
This policy covers property sold by the insured that must be transported to another location and installed before the purchaser accepts it. In some cases, this can take weeks or even months to complete. Machinery, equipment, building materials, and supplies are the types of property considered installation risks, and they may consist of elevators, air conditioning equipment, boilers, and similar building equipment.
A special form exists for insuring the value of signs, including neon, fluorescent, automatic, or mechanical signs.
Insurance for electronic data processing equipment and media is becoming increasingly important. This coverage can be very important since it covers both hardware and software, which are often sizable investments for a business.
It is used to ensure high-end jewelry stores. It covers the insured’s merchandise held for sale, property in showcases, and customers’ property.
The jewelers’ block form also covers loss of covered property from show windows at the premises from theft or attempted theft involving the smashing or cutting of the show windows. It will also cover the loss of property by theft from locked safes or vaults at the premises, when the safes or vaults have been broken into.
Property and liability insurance may be purchased for aviation exposures. Aircraft hull insurance is available to cover direct total loss to aircraft. Coverage is provided for loss occurring on the ground or in the air. Ground coverage includes:
Aircraft liability provides similar protection as that covered by commercial automobile liability. An insured may choose coverage for the bodily injury of passengers or may exclude passengers.
Additional types of aviation insurance include medical payments, products and cargo liability, premises and operations liability of an airport, and others.
Hangar keeper’s liability is a form of bailee coverage that will protect an airport that is legally responsible for damage to an aircraft owned by another person while it is kept in the airport hangar.
Marine insurance consists of two main categories: Inland Marine Insurance and Ocean Marine Insurance. Ocean Marine Insurance covers property being transported over waterways like oceans, protecting hulls and cargo. It covers four basic risks:
It provides coverage against a variety of risks like perils of the sea. Implied warranties include seaworthiness, condition of cargo, legality, and no deviation in voyage. Exclusions typically involve war, strikes, riots, decay, and inherent vice.
Inland Marine Insurance was developed to provide coverage for cargo traveling over land. The insurance industry defines six categories of eligible risks:
Transportation policies, including trucker, owner, and trip transit forms, cover property damage during transit. Equipment Floaters cover various types of equipment, such as contractor’s equipment and valuable papers and records.
Aviation Insurance covers property and liability for aviation exposures. Types include aircraft hull insurance, aircraft liability, medical payments, products liability, and hangar keeper’s liability.
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